Microsoft Jumps into RFID

Filed in archive Software Applications on February 8, 2004

You know RFID is going mainstream when Microsoft gets involved.

Last week Microsoft announced that it intends to become a player in RFID. Part of those plans include providing RFID-enabled software for midsize companies to manage their supply chains.

Of course, up to now it's been the large organizations leading the way -- organizations like Wal-Mart, Metro Group and Proctor & Gamble. No mystery there: RFID is expensive to implement. Larger organizations have the most to gain through automating their supply chains and can therefore justify the expense and effort.

That's why Microsoft's announcement is so notable. The software provider aims to bring the power of RFID technology down to tier three and tier four companies. Part of its plan is to RFID-enable the enterprise business applications it owns through its acquisitions of Great Plains and Navision. RFID Journal has a detailed discussion of Microsoft's RFID strategy here.

It is still too early for small businesses to get involved in RFID. Look for it to be years -- not months -- before small businesses adopt RFID. It will take standardization of RFID technology, reduced prices, and off-the-shelf implementation ease before small businesses can afford it and justify it.

But midsize businesses will need to invest in RFID sooner if they want to stay competitive. And Microsoft is positioning itself to be there as the RFID-enabled software provider of choice for the midsize business market.